As has been said, you will get a new sim but will have to buy yourself a new phone. You won't have to pay 3 for the phone but will have to keep paying the contract for the remaining 14 months.
I am almost in the same situation - I took out an 18mth contract (rather than my usual 12) just so I could get the phone I wanted for free. Six months into the contract, I broke the phone (completely my own fault) and hadn't taken out insurance. I have to pay my bill as normal each month but have had to buy a replacement phone from Ebay until my contract runs out in December, when I can get another free one.
Come December, I will be taking out insurance as well!!